In the eyes of Tony Fernandes, airports represent the largest hurdle when it comes to an airline’s ability to advance its digital capabilities. Fortunately, some are starting to see the light… and for AirAsia, it has started with the ultra-modern Terminal 4 at Singapore Changi Airport.
At a press conference in Singapore, AirAsia Group CEO Tony Fernandes applauded Changi Airport Group’s (CAG) Terminal 4 for being the first to take the “digital journey” by upgrading its infrastructure with highly automated systems. AirAsia’s operations migrated to Changi T4 in early November.
He stated that many fail to consult airlines when it comes to developing the infrastructure of new terminals, which have large repercussions for air travel’s ability to become more high-tech. Airports need to regard airlines as partners and develop methods that will ultimately enhance the travel experience.
“Now, working with CAG, we are moving on to the digitalisation of our airport experience. The improved savings and efficiencies from FAST (Fast And Seamless Travel) align perfectly with our quest to maintain the lowest cost structure… which means lower fare for our guests and more traffic for Changi,” said Fernandes.
FAST systems would enable people to move easier and quickly through the airport, “break down the invisible barriers in travel to make it easier to move around.”
The new terminal features fully automated check-in kiosks and bag drops, immigration clearance and boarding gates, powered by facial recognition technology.
Yet, Changi’s T4 is still only the first step towards achieving AirAsia’s broader objectives of making airports far more high-tech. When asked which ASEAN airports would be the fastest to adopt, Fernandes said that Thailand, Philippines and Indonesia seemed to indicate the most interest.
Fernandes said, “the momentum is kicking in… some airports now are beginning to really understand that a low cost airline doesn’t require what a full service one needs. We’re fighting hard to say what [FSCs] want is different from what [LCCs] want, and slowly that’s beginning to resonate now.”
Tony Fernandes, Group CEO, AirAsia (Credit: World Travel & Tourism Council via Flickr)
“In my experience, once one country does it, there’s a ‘me too’ approach.” Nevertheless, there are bureaucratic hurdles that AirAsia must confront if it aspires to roll out its digital initiatives ASEAN wide.
But, he says, airlines must stop relying on governments to initiate change. Instead, the responsibility lies with airline companies to develop their own technology and show them how it can be implemented effectively, in order for governments to be more responsive.
This is especially true within the realms of airport and international security. Fernandes also foresees an ASEAN ‘portal’ through which frequent travellers can blitz through airport security through a system similar to TSA PreCheck. Though, he is aware that getting all nations to unanimously agree on the same framework of regulations will be a tricky task, but one worth trying.
Beyond airports, Fernandes also outlined what he envisions when speaking of transforming AirAsia into a full-fledged digital airline and what strategies are currently in place to make this vision a reality.
Other products AirAsia is rolling out as part of its digital-forward initiative includes the development of its own virtual payment system through their mobile app, known as BIG Pay.
This pairs with its initiative to make WiFi readily accessible on board all flights, so that passengers can conduct all payments via the AirAsia app, another step towards AirAsia’s attempts to remove cash altogether, in any in-flight transaction.
This same payments system will complement its online duty-free shop, Rokki.com, as the airline attempts to become the “Amazon of the sky”.
It has also rolled out an image-based travel recommendation site, Travel3sixty.com – described by Fernandes as a cross between Snapchat and TripAdvisor – which grants travellers access to live and constantly updating travel recommendations.
All these initiatives are the result of the LCCs investments into mining and refining the data accrued over years, to develop deeper insights into its customers.
It all feeds into their larger blueprint of creating an ecosystem that allows AirAsia to venture beyond its existence as an airline and enter into other verticals like payments, shopping and more.
Lead image credit: iStock